Grain Highlights 04.01.2024

Refinitiv Commodities Research has increased its forecast for corn production in Argentina for the 2023/24 season by 2% to 55.4 million tons, covering an area of 8.2 million hectares.

- According to Conab data, the harvesting campaign of the first corn crop of the 2023/24 season has started in Brazil, with 0.9% of the areas processed as of December 30, 2023 (+0.7% for the week and 0.2% higher than the previous year). In the state of Parana, 80% of the crops are in good and excellent condition (compared to 79% the previous year).

- According to Cepea data, the wheat production in Brazil for the 2023/24 season is expected to significantly decrease due to abundant rainfall in the south, leading to poor crop quality. This will reduce the country's wheat exports to 2 million tons (-24.7% compared to 2022/23).

- Refinitiv Commodities Research has increased its forecast for corn production in Argentina for the 2023/24 season by 2% to 55.4 million tons, covering an area of 8.2 million hectares. The soybean production estimate has also been raised by 2% to 49.2 million tons, covering an area of 16.9 million hectares.

- Sales obligations for palm oil on the domestic market in Indonesia in 2023 amounted to 3.26 million tons, with an allowed export of 25.2 million tons. The practically unrealized export reaches 6.2 million tons. In Indonesia, the rule is first to fulfill the mandatory domestic market portion of the quantity and then proceed to exports.

- According to data from the Food Corporation of India, wheat reserves in India have decreased to 16.47 million tons, the lowest level since 2017. From June 1, 2023, to date, 5.8 million tons of wheat have been sold from government stocks to millers, helping stabilize prices.